What is profit tax?
Profit tax is a levy imposed on the net profit of businesses. It is often used synonymously with corporate income tax, though in some jurisdictions it may appear as a separate tax. In Hungary, it is covered under corporate tax regulations.
How is it calculated?
The tax base is the pre-tax profit adjusted by specific tax modifications. The applicable tax rate is then applied to determine the amount due.
Who is subject to it?
All profit-generating legal entities, such as LLCs, corporations, and joint-stock companies. Special rules may apply to nonprofits and other entities.
Official definition
Profit tax is a state-imposed tax on the net income of companies, intended to contribute to public revenue.
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